No performance condition applies below a block of 100 shares. The plans of 20 April 2016, 20 April 2017 and 17 April 2018 were finally granted by the allocation of, respectively,835,600 shares on 21 April 2020, 742,276 shares on 21 April 2021and 868,225 shares on 19 April 2022. The number of fully vested shares for the 17 April 2018 plan took into account the performance percentage achieved at the end of the plan.
At 31 December 2022, the performance conditions for plans in progress were deemed achieved.
The fair value of free shares is determined using the following assumptions:
| Stock subscription plans | |||||||
|---|---|---|---|---|---|---|---|
| Grant date | April 2016 | April 2017 | April 2018 | April 2019 | October 2020 | October 2021 | October 2022 |
| Risk-free rate of return | -0.06% | -0.35% | -0.28% | -0.25% | -0.53% | -0.60% | 2.24% |
| Discount for post-vesting transfer restrictions for French employees | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
| Expected dividends | 1.85% | 1.82% | 1.85% | 1.58% | 1.34% | 1.11% | 1.46% |
| Share price | €168.10 | €181.75 | €191.85 | €243.80 | €288.00 | €360.00 | €327.80 |
| Fair value | |||||||
| ● Employees resident in France | €154.32 | €166.90 | €176.17 | €226.25 | €269.37 | €339.34 | €303.33 |
| ● Employees not resident in France | €154.32 | €166.90 | €176.17 | €226.25 | €269.37 | €339.34 | €303.33 |
The expense recorded in 2022, 2021 and 2020 amounted to €155.3 million, €152.3 million and €120.1 million, respectively.
In June 2022, Group employees had the opportunity to join a Shareholding Plan based on a traditional format with discount and matching contribution.
The subscription price was set at €254.90, representing 80% of the average share price over the 20 trading sessions prior to the decision by the Chief Executive Officer setting the subscription period from 8 June to 22 June 2022 during which 410,943 shares were subscribed. This number does not include the subscription reserved for a Trustee under the laws of England and Wales, as part of a Share Incentive Plan established for Group employees in the UK, for which the number of shares will be finalised in October 2023.
For French employees, free shares were offered upon subscription in proportion to their personal contribution to the plan with a maximum of 4 shares offered for 10 shares subscribed.
For employees in other countries, shares were offered under a free share plan with a continued employment condition for the employee and proportionate to how much the employee contributes to the plan, with a maximum of 4 shares offered for10 shares subscribed. The shares will be allocated to employees on 26 July 2027 provided they are still with the Group on that date.
The IFRS 2 expense measuring the benefit offered to employees is calculated with reference to the fair value of the discount offered on the non-transferable shares.
The capital was increased on 26 July 2022 by 448,267 shares, including matching shares.
The IFRS 2 expense for free shares granted amounted to:
This cost is amortised over the vesting period and corresponds to the share reference value adjusted for the expected dividends over the vesting period, namely €286.36 per share.
The IFRS 2 expense for free shares recognised for the 2022 financial year amounted to €13.7 million and corresponds to 2018, 2020 and 2022 plans.
The IFRS 2 expense amounted respectively to €9.7 million and €2.8 million in 2020 and 2021.
